tv Wall Street Week FOX Business July 30, 2017 9:00am-9:30am EDT
d ancheck out our website at foxnews.com/propertyman. i'm bob massi. i'll see you next week. [ woman vocalizing ] it's online and in bookstores everywhere. >> announcer: from fox business headquarters in new york city, the new "wall street week." maria: welcome to "wall street week." the program that analyzes the week that was and position you for the week ahead. coming up, my exclusive interview with house speaker paul ryan. and hum erwin blood's managing director. everything from wall street to main street. amazon beat expectations but profits were down 70%.
entire technology sector showed weakness towards the ends of the week. friday morning gdp was 2% for the second quarter. it was an epic fail in the senate for the healthcare reform battle. all 48 democrats and 3 republicans voted against the so-called skinny repeal bill. the deciding no vote from arizona senator john mccain saying he want a bipartisan approach to changing obamacare. foxconn announced it's pledging to advance $10 billion to build a plant in wisconsin that could employ between 3,000 and 13,000 workers. three of the so-called fang
companies. technology has bent leadership group since the beginning of the year. joining me is david bonson. thank you for joining us. tech was on the down side this week. do you see that as a buying opportunity or do you think the valuations in technology have become excessive. >> no question the valuations are excessive and the dips are so minor, even if one wants to buy on the dip, this wouldn't count as a dip. maria: apple reports earnings next week. would you buy apple here? >> we own apple at the bahnsen group. but we like where it's at. i would expect the stock will come down. it has a monstrous run this year.
high 20% gain on the year. but the story with apple when a new product cycle comes is it dips at announcement. i'm not expecting it to jump, but if it were to dip enough we could come back in. maria: the double digit gain from november of last year on the markets. would you put money into stocks? >> it's a great environment to be owning stocks right now. you have low inflation and global conditions that are across the board better. back to where we were a year and a half ago, it's he morning markets, europe, japan, china. all of which have settled. the real story is the earnings acceleration in the united states. the problem is valuation. and then there is concern about washington, d.c. and the ongoing
volatility. but what i have never seen in my life is a decorrelation like this between the market and what d.c. is doing. the markets are shrugging off virtually anything coming out of the white house. anything that getting done on capitol hill. the reason for that is a healthy earnings environment in corporate america. maria: the first quarter we had profits up 13%. the second quarter it's looking like 6%, 7% profit groups. >> so you have a strong earning environment, and there is still hope for potentially maybe a precall option on something good out of d.c. i don't think they are overly worried. six months ago we were optimistic about health reform and tax reform.
but we were worried about trade. at this point most of of that seems to be more bark and bite. you would think it market would be happy by the, but they are not getting the other things done. boor prr more "wall street week" and house peak per paul ryan next. >> announcer: house speaker paul ryan ready to break ground paul ryan ready to break ground on tax reform. i am totally blind. and non-24 can make me show up too early... or too late. or make me feel like i'm not really "there." talk to your doctor, and call 844-234-2424.
yeah. ♪ ♪ the world of fast food is being changed by faster networks. ♪ ♪ data, applications, customer experience. ♪ ♪ which is why comcast business delivers consistent network performance and speed across all your locations. fast connections everywhere. that's how you outmaneuver. maria: welcome back. the obamacare repeal is dead at least for now. house republicans are on to tax reform. that was the topic when i sat down with speaker paul ryan thursday. he suggested the border adjustment tax will not be part of his tax reform plan which something he previously wanted. >> we think most of of all that is important is that we come to
common ground on how to do tax reform so we can get it done in 2017. what i and other house leaders who have been pushing the border tax i still think it' the right way to go. but if it will stop us from getting tax reform done, we don't want that to happen, meaning the border ajust it's more important than anything that we get tax reform done because we think it' critical for strong economic growth. we want to go through and look at the details to see if there is a viabla viable -- a viable alternative to a border adjustment tax. looking at thanks rates and expensing. we want to make sure we can achieve those things without having a border adjustment tax. once we realize that is viable
we agreed we need to go on a common template. the ways and means committee and the finance committee, we tasked them with writing the details of this tax reform. getting consensus between the white house, the senate and the house on the way forward makes it that much more a viable enterprise. i feel much more confident we'll stick the landing on tax reform. we have consensus, here is the framework, get it done. maria: does it have to be revenue neutral. >> it has to be compliant with our reconciliation rules. in the house weuse macro economic scoring. so we take into account the economic effects of tax changes and use a realistic baseline that reflects current policies, our current policy proposals.
what that means is we can have a big tax cut but also make sure that we are in compliance with our deficit rules and deficit targets. >> do you need tofind revenue somewhere else? >> the point i'm making is, with all the tools we have to make sure retake into consideration the economic effects. maria: you are expecting 3% growth in. >> i don't think we can get to 3% growth without tax reform. regulatory relief, work on labor supply, welfare to work. but tax reform. you can't get to 3% growth in my opinion without tax reform. that's why it's so important and we all agree. we as republicans especially now agree on how to do it. healthcare is a good example. there is not a complete
consensus on how best to do healthcare reform. healthcare we can't put everything we want in a reconciliation bill it's one of the reasons it's become difficult. tax reform, we can put the entire package inthis reconciliation bill. one bill, and it brings tax relieve to families and businesses and makes us globally competitive. maria: where are the avenues to raise revenue? >> you have got to broaden the base to lower the tax rates. we need to clear out loopholes abductions so we can lower tax rates for everybody across the board. we believe on the family side, raise that standard deduction, get away some of the coffer-outs, but preserve charities and retirement savings. but clean up the tax code to
help consolidate thanks brackets. on the business side, you have got to take away loopholes so you can lower tax rates and that's the work our tax writing committees will engage in doing. we believe -- we need to make sure we prioritize those things, retirement savings, but we also think by raising the standard exemption tore families we can simplify the code. most of people don't have to itemize their deductions. so they have dramatic simplification but homeownership, charitable giving. on the business side, we know we are the last country in the industrialized world that says you can't bring your money back home, you will get taxed if you do. we have to get rid of that. so companies with cash parked
overseas can bring their money back home. it's 2 to 3 thril trillion doll. we have to get our tax rates down on businesses so we are in the hunt with respect to global competitiveness. the top pass-through tax rates 40%. it's making us uncompetitive. we know we have to get those rates down. maria: something that wowed and struck a lot of people who voted for your party and donald trump. do you support white house strategist steve ban noon proposal he's willing to raise the highest rate up to 44%. >> the trump plan the president put out earlier in the year fits our preferences. i think his rates for 10, 25 and 35. that's where we have consensus.
the president's plan that he put out with secretary mnuchin and cohn are the areas we are look at going. i'm not going to comment on something i don't know about or have seen. but i have seen the president's framework on tax reform which is what we are work on. maria: it seems like a republican 44% for the highest earners. >> there are some other things do you with the obamacare taxes, it's 44.6%. getting the rates down, we are in the business of lowering tax rates. the point is, the president himself with his economic advisors put out a framework that we think really works. now on the business side, we spent the last three months look at making sure there is a viable alternative to a cash flow border adjustment tax that
allows us to become a territorial system. now that we are confident that that is achievable we are moving forward with the same template in agreement so that our tax writers can go get this done and we can pass this this fall. maria: some people would say if you are not for cutting taxes on the highest earners, you are not for cutting taxes. the highest earners pay most of of the tax. >> most of of these pairs are businesses. we tax our businesses as individuals. ll krrkss, sole pro pry towards. 90% of the businesses in wisconsin are paying their tax as individuals. we compete against canada every day in wisconsin. their tax rate is 15%. england is going to 17%.
china is 25% and going down. the average in the industrialized world is 22.5%. we have a consensus on how to do that and that's what's important. maria: for more of my interview with house speaker paul ryan join me sunday on the fox news channel. >> announcer: tech giants are always on the hunt for the next unicorn. >> the companies in order to move their needles have to think move their needles have to think big as well. i love to eat. i love hanging out with my friends. move their needles have to think big as well. i have a great fit with my dentures. i love kiwis. i've always had that issue with the seeds getting under my denture. super poligrip free. it creates a seal
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for technology and am is reporting earnings as well. these are the largest technology companies and collectively they have a market value of better than $3 trillion. they have been leading this market all year. ann winblad weighed in. ann winblad: these companies are quite large. we noticed a lot of big moves. microsoft bought linkedin. and i think we'll see more acquisitions from these companies at that scale. we noticed a big acquisition by amazon in process of whole foods. these companies in order to move their needles have to think big as well. they are also investing in small come any. google was one of the most of
prolific investors in small come any making small bets on a distant future. microsoft last year created an investment arm. apple does not have an investment arm. amazon has an alexa fund where they are investing in internet companies to complement their amazon ecos. so that money is going multiple places by all of those companies. maria: we talk about these top technology companies a lot because they just won't quit wet were it's am or amazon or google parent alphabet. they have listen so much. do you think they will continue rising? are you worried about valuations within the public market?
ann winblad: the valuations are high. but when you look at the potential of these companies, most of of these companies, microsoft, amazon, much younger companies than microsoft, alphabet, they already dominate multiple innovation cycles. usually when there was a new innovation cycle, companies were left in the dust and didn't carry on and they had to rise from the dead. now these companies continue to build point innovation cycles. look at google. they came on at the 1999 crash owning search. they moved on to own internet advertising. look at the areas where theyare putting bets fromathon plus vehicles to digital health to operating systems for smart phones. they moved solidly from one innovation cycle to the next and they want to own the next one.
they have the research dollars, the investment dollars. they have the moan men actual and ownership of our wallets and minds to really be even larger companies. and that is why people continued to invest in these companies and why the valuations are ahead of what you normally see. they are investing in a really bright future. maria: you think this is the growth story and it goes higher. let's talk about the sectors where you are seeing the most of security. you have got cyber-security with $576 million invested year to date. digital health, artificial intelligence and auto technology. $254 million invested in auto tech year to date. talk about the sectors and where the opportunity are right now, ann.
ann winblad: we'll see cyber-security to be an investing area for a long time. it's one of the biggest challenges we have in this digital world. it's what are the bad actors going to do if the bad innovators want to innovate. the number stated by the venture capital surveys was somewhere between $500 million to a billion invested in cyber-security companies. we are seeing some of the younger companies get the mega round. this last quarter there were 30 over $100 million venture round. and many were in security companies. that will be a continuing theme. artificial intelligence, anything that build smart systems is. >> the big topic. last year there was $5 billion invested in artificial intelligence, our smart companies.
so it's very crowd at the starting line. starting line. maria: today, we're out here with some big news about type 2 diabetes. you have type 2 diabetes, right? yes. so let me ask you this... how does diabetes affect your heart? it doesn't, does it? actually, it does. type 2 diabetes can make you twice as likely to die from a cardiovascular event, like a heart attack or stroke. and with heart disease, your risk is even higher. you didn't know that. no. yeah. but, wait, there's good news for adults who have type 2 diabetes and heart disease. jardiance is the only type 2 diabetes pill with a lifesaving cardiovascular benefit. jardiance is proven to both significantly reduce the chance of dying from a cardiovascular event in adults who have type 2 diabetes and heart disease and lower your a1c. jardiance can cause serious side effects including dehydration. this may cause you to feel dizzy, faint, or lightheaded, or weak upon standing. ketoacidosis is a serious side effect that may be fatal. symptoms include nausea, vomiting, stomach pain, tiredness, and trouble breathing. stop taking jardiance
and call your doctor right away if you have symptoms of ketoacidosis or an allergic reaction. symptoms of an allergic reaction include rash, swelling, and difficulty breathing or swallowing. do not take jardiance if you are on dialysis or have severe kidney problems. other side effects are sudden kidney problems, genital yeast infections, increased bad cholesterol, and urinary tract infections, which may be serious. taking jardiance with a sulfonylurea or insulin may cause low blood sugar. tell your doctor about all the medicines you take and if you have any medical conditions. so now that you know all that, what do you think? that it's time to think about jardiance. ask your doctor about jardiance. and get to the heart of what matters. potsc(in unison) drive russ, leland, gary: yes. gary: i have a ford f-150. michael: i've always been a ford guy. potsch: then i have a real treat for you today. michael: awesome. potsch: i'm going to show you a next generation pickup. michael: let's do this. potsch: this new truck now has a cornerstep built right into the bumper. gary: super cool. potsch: the bed is made of high-strength steel, which is less susceptible to punctures than aluminum. jim: aluminum is great for a lot of things, but maybe not the bed of a truck. potsch: and best of all, this new truck is actually- gary: (all laughing) oh my... potsch: the current chevy silverado. gary: i'm speechless.
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maria: here is a look at some of the big market events coming up. pending home sales are out. personal income and spending as well as the jobs numbers. the employment report typically a market mover. they will be important numbers to watch. be sure to tune in next week for must-see coverage of the jobs report on "mornings with maria." pandora. bp, and cigna, all important companies to monitor on their earnings. leon panetta my special guest
next week. that will do it for us on "wall street week." have a great weekend. >> i'm bob massi. for 35 years, i've been practicing law and living in las vegas, ground zero for the american real-estate crisis. but it wasn't just vegas that was hit hard. lives were destroyed from coast to coast as the economy tanked. now it's a different story. the american dream is back. and nowhere is that more clear than the grand canyon state of arizona. so we headed from the strip to the desert to show you how to explore the new landscape and live the american dream. i'm gonna help real people who are facing some major problems, explain the bold plans that are changing how americans live, and take you behind the gates of properties you have to see to believe. at the end of the show,